Texas Gas Transmission Corporation

First Revised Volume No. 2-A

Effective Date: 06/01/1991, Docket: RP90-192-005, Status: Effective

First Revised Sheet No. 22 First Revised Sheet No. 22 : Effective

Superseding: Substitute Original Sheet No. 22

RATE SCHEDULE

FT-SL, FT-1, FT-2, FT-3 and FT-4

Firm Transportation Service

(Continued)

event capacity necessary to render the requested

service does not exist at the time the request is

made pursuant to Section 8 hereof; provided, how-

ever, Transporter may, at its option, add facilities

or expand capacity to provide such transportation

service. Customer may be required to pay or cause

Transporter to be paid for the installed cost of all

such facilities.

1.4 Delivery facilities contemplated by Section 1.3 of

this Rate Schedule may be installed by either Trans-

porter or Customer as provided below:

(a) Transporter will pay for all or part of the

cost of the modification or construction of

facilities required at delivery point(s) to

effectuate the delivery of natural gas here-

under, when the construction or modification of

such facilities is economically beneficial to

Transporter.

For purposes of determining whether a project

is economically beneficial to Transporter,

Transporter will evaluate each prospective

project based upon the incremental cost of

service of the facilities to be constructed by

Transporter, and the incremental revenues which

Transporter estimates will be generated as a

result of constructing and/or modifying such

facilities.

In estimating the incremental revenues to be

generated, Transporter will calculate the

revenues based upon its currently effective

maximum transportation rates, exclusive of any

surcharges, and the projected incremental

volumes which will result from the project.